a loan made in order to consolidate several debts into one loan, usually for the purpose of reducing the monthly payments by extending them over a longer time period.
What Is The Difference Between Loan, Lend, Loaned, And Lent?The words loan and loaned are the present and past tenses of to loan. Lend and lent are the present and past tenses of to lend.
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British Dictionary definitions for consolidation loan
a single loan which is taken out to pay off several separate existing loans
Collins English Dictionary - Complete & Unabridged 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012